Cramer listed seven tech stocks, or the "seven samurais," that will send the stock price of their acquirers higher if bought.
1. Acme Packet(APKT) has seen an 84% gain since August 2010 and facilitates delivery of voice, video and data over networks. The company has 60% market share, and its high 55 multiple is offset by its 32% growth rate.
2. Netgear(NTGR) is up 32% since Cramer recommended it on October 8th and makes home networking equipment. It is a duopoly with Cisco but is "eating Cisco's lunch." The company has a multiple of 17 and a 17.5% growth rate.
3. Cirrus Logic(CRUS) makes chips that help convert data to sound and vice versa. Its technology is used in the iPad, iPod and smart phones. The stock has been on a rollercoaster and its disappointing performance prompted Cramer to suggest waiting to see if its next quarter will be better, but Cramer is hopeful about the stock, which will supply parts to major gadgets. Cirrus trades at a multiple of 12 with a 20% growth rate.
4. Motricity(MOTR) has pulled back ten points after its IPO in June. The company makes technology that enables internet access for non-smart phones. The company has 80% market share, strong subscriptions and is expanding overseas. Motricity has a 25 multiple with a 25% growth rate.
5. Akamai(AKAM) makes the web faster, especially for video. The stock is up 81% since Cramer recommended it in January 2010 and has more room to run. The company has a multiple of 29 with a 17% growth rate. If Cisco bought the company, "it would turn that beagle (Cisco) into a greyhound."
6. Nvidia(NVDA) is a graphics chip maker for netbooks, tablets and smartphones. Cramer predicted in July that the company had seen its last bad quarter and the stock is up 89% since then. The multiple is a pricey 28 but it has a 14% growth rate. The stock is up after a deal with Intel, and Cramer would let it come down before buying.
7. Arm Holdings(ARMH): This semi play has seen a huge 200% gain. ARMH licenses its chip designs, and its technology is in 95% of all smart phones and it has a "serious relationship with Apple." The company has a multiple of 50 with a 20% growth rate. Cramer predicts Intel will shoot up 5 straight points if it buys ARMH.
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